JPMorgan Whistleblowing

If you’re a JP Morgan employee with knowledge of potential fraud, financial misconduct, anti-money laundering violations, or foreign bribery, U.S. laws can protect you and offer substantial awards for your information.

We suggest keeping quiet and avoiding internal hotlines, as reporting internally often leads to retaliation. Based on previous JP Morgan whistleblowing cases, it’s understood that internal compliance programs are often put in place to protect the interests of the bank, not its employees.

Continue reading to learn more about the types of fraud or misconduct JP Morgan has been involved in over the years, and the process for reporting your concerns.

Based out of New York, New York, JP Morgan is an American multinational finance company and the largest bank in the United States. JP Morgan has a history of financial offenses, including violations of the Securities Exchange Act and the Commodities Exchange Act, among others.

If you have strong and credible information that reflect similar offenses, you may want to think about blowing the whistle. Your information can protect investors and financial markets from further harm. Below is a list of the types of fraud and misconduct the bank has been engaged in over the last several years:

Commodities Fraud

Over the years, JP Morgan has been involved in various commodities fraud cases, which have resulted in massive financial penalties and criminal charges against some of its employees.

• Precious Metals Manipulation: The bank has been accused of manipulating the price of precious metals like gold and silver through collusion with other traders.
• Spoofing: The bank has engaged in spoofing, a manipulative trading practice where large orders are placed with the intent to cancel them before execution.
• Surveillance Gaps: The CFTC found that JP Morgan failed to capture billions of orders in its surveillance systems in violation of CFTC regulations.

Securities Fraud

JP Morgan has been involved in several high-profile securities fraud cases, and has faced numerous legal challenges over the years.

• Business Records Violations: JP Morgan Securities was charged with widespread and longstanding failures to maintain and preserve written communications about securities business matters.
• Whistleblower Protection Violations: The bank was accused of impeding clients and customers from blowing the whistle and reporting potential securities law violations to the SEC.
• Market Manipulation: The bank has been implicated in manipulating various markets, including the precious metals market.

Below are a few of the cases JP Morgan has been involved, which has led to substantial penalties:

Whistleblower Protection Violation (2024)

JP Morgan Securities LLC agreed to pay an $18 million civil penalty to settle charges of impeding hundreds of advisory clients and brokerage customers from reporting potential securities law violations to the SEC. According to the SEC, JP Morgan Securities regularly asked retail clients to sign confidential release agreements if they had been issued a credit or settlement from the firm of more than $1,000. The agreements required the confidentiality of all information relating to the account at issue and prevented clients from reporting violations to the SEC.

Supervision Failures (2024)

JP Morgan Securities LLC paid a $200 million civil monetary penalty for failing to diligently supervise its business as a CFTC registrant by neglecting to capture billions of orders in its surveillance systems. The bank was found in violation for failure to configure certain data feeds to ensure complete trade and order data were being ingested by J.P. Morgan’s surveillance tools.

Recordkeeping Failures (2021)

The SEC announced a settlement of $125 million against JP Morgan Securities, a subsidiary of JP Morgan Chase & Co., for widespread and longstanding failures by the firm and its employees to maintain and preserve written communications as mandated by SEC regulations. Employees often communicated about securities business matters on their personal devices, using text messages, WhatsApp, and personal email accounts without preserving any records as required by the federal securities laws. SEC also demanded JP Morgan implement robust improvements to its compliance policies and procedures to settle the matter, with failure to do so constituting another SEC violation.

Spoofing (2020)

The CFTC settled charges against JP Morgan Chase & Company and its subsidiaries, JP Morgan Chase Bank, N.A., and JP Morgan Securities for $920.2 million for manipulative and deceptive conduct and spoofing. The allegations involved hundreds of thousands of spoof orders in precious metals and U.S. Treasury futures contracts on the Commodity Exchange, Inc., the New York Mercantile Exchange, and the Chicago Board of Trade.

Internal reporting may seem like a wise option. In fact, JP Morgan encourages employees to report concerns internally using their J.P. Morgan Securities Conduct Hotline, claiming that their concerns will be addressed.

However, whistleblowers should be aware that these channels are only created to protect the interests of JP Morgan – not the whistleblower. Reporting internally will most likely lead to retaliation or inaction. In the three decades of protecting whistleblowers, we’ve seen retatlion and inactivity as the two common responses to internal whistleblower tips.

Many insiders believe that external whistleblowing will not have an impact, or their disclosures will not be protected. However, this is far from the truth. The U.S. offers whistleblowers the most powerful protections, including the right to file anonymously and receive substantial awards.

If you’re thinking about reporting concerns, we suggest using these U.S. laws, which we discuss in greater detail below.

Given JP Morgan’s history of regulatory violations and non-compliance, there is a significant risk of further misconduct. Whistleblowers play a crucial role in preventing such actions and preserving the integrity of financial markets.

If you are an employee of JP Morgan and have information about potential violations, consider reporting your concerns. There are several federal laws that offer protection for whistleblowers and potential rewards.

Key Whistleblower Programs

• Securities and Exchange Commission (SEC) Whistleblower Program: Offers awards of up to 30% of monetary sanctions for information leading to successful enforcement actions.
• Commodity Futures Trading Commission (CFTC) Whistleblower Program: Provides similar rewards, up to 30% of monetary sanctions, for violations related to commodities futures trading.
• Foreign Corrupt Practices Act (FCPA) Whistleblower Program: Rewards whistleblowers who report foreign bribery and other forms of corruption involving political officials.
• Anti-Money Laundering (AML) Rewards Programs: Offers rewards for information related to money laundering and sanctions violations.

Additional Laws

Beyond these specific programs, JP Morgan may also be subject to penalties under laws such as:

• The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC)
• The Financial Industry Regulatory Authority (FINRA)

Your information can make a significant difference. If you you have evidence of wrongdoing at JP Morgan, contact a whistleblower attorney to discuss your options.

When it comes to reporting violations at JP Morgan, navigating the complex legal landscape can be daunting. A specialized whistleblower attorney can provide invaluable guidance and support throughout the process. Here’s why:

• Protection: Ensure your legal rights are protected and avoid retaliation.
• Maximized Award: Increase your potential reward by filing claims correctly and on time.
• Expert Guidance: Navigate the intricate rules and procedures of whistleblower programs.
• Confidentiality: Have a safe space to discuss concerns and receive guidance.
• Anonymity: Report violations anonymously through an attorney.
• Negotiation: Secure favorable terms in settlement agreements.
• Contingency Fee: No upfront costs, pay only if you receive an award or settlement.

By working with a whistleblower attorney, you can significantly improve your chances of a successful outcome and mitigate potential legal and financial risks.

We have a proven track record in banking whistleblower cases. Our firm has a history of representing clients in some of the largest banking scandals in recent history.

We represent money laundering whistleblower Howard Wilkinson, who exposed a $230 billion money laundering scheme at Danske Bank. Also, UBS whistlblower Bradley Birkenfeld, who uncovered a massive tax evasion scheme at UBS involving over 4,450 U.S. taxpayers. His whistleblowing led to a $104 million award from the IRS.

If you’re considering reporting a violation at a financial institution, our team of experienced whistleblower attorneys can provide the guidance and support you need. We offer free, confidential case evaluations and work on a contingency fee basis, meaning you pay nothing unless we win your case. Contact us today to discuss your situation.